KUALA LUMPUR — Despite more than a year of tit-for-tat tariffs in the US-China trade war and anxiety about its cost to the world economy, foreign direct investment into Southeast Asia continued to grow strongly last year, even as global levels flatlined. Newly-published estimates from the United Nations Conference on Trade and Development (UNCTAD) suggest that, out of a global FDI spend of US $1.39 trillion in 2019, member-states of the Association of Southeast Asian Nations received $177 billion, breaking the region’s 2018 record of $155 billion. While Southeast Asia’s 2019 total was substantially less than European Union’s $305 billion or the United States’ $251 billion, its inward FDI is increasing while the EU’s dropped 15% and the US’s stayed the much the same.
SINGAPORE — In a highly-anticipated policy address in Singapore, acting US Defense Secretary Patrick Shanahan warned today (June 1) China that “behavior that erodes other nations’ sovereignty and sows distrust of China’s intentions must end.”At the same time, America’s top defense official stopped short of demanding countries take sides in the US-China economic and military face-off and said that there is still a chance for the two superpowers to come to terms.“The United States does not want any country in this region to have to choose or forgo positive economic relations with any partner,” Shanahan said, adding in a veiled reference to China that “some in our region are choosing to act contrary to the principles and norms that have benefitted us all.”
JAKARTA — Southeast Asia is bucking the global trend of falling direct foreign investment, as the low-cost fast-growing region solidifies its position as an attractive location for multinationals. James Dyson’s recent decision to relocate the headquarters of his eponymous technology business to Singapore is not about Brexit, the company said. Rather, the British tycoon said he is looking to a region that continues to exhibit solid growth — “future proofing” as his chief executive termed it. The move follows an October announcement that Dyson — famous for its vacuum cleaners — will make electric vehicles in Singapore, citing the city-state’s proximity to “high-growth markets” in emerging Asia, where annual gross domestic product could grow by 6.1% between now and 2023, according to the Organization for Economic Cooperation and Development. Asia received a third of global investment in 2018 and accounted for nearly all the year’s investment growth, according to the United Nations Conference on Trade and Development. This is despite global foreign direct investment (FDI) declining 19% in 2018. Japanese retailer Aeon opened a second large mall in Cambodia in June as part of its regional expansion plans, which this year will include new shopping centers in Hanoi and Bogor, Indonesia. “As for South East countries, generally speaking, they have been showing rapid economic growth and will keep their pace in future, too,” an Aeon Asia spokesperson said.
JAKARTA — A spokesperson for the EU stated that the bloc “wants to continue to negotiate ambitious and balanced trade agreements with key partners in the region — this is what we have been doing with Japan, Korea, Singapore and Vietnam.” A “no deal” Brexit could work in one of two ways. While it would risk sidetracking the EU from tricky trade talks with Asia, Brexit could also make the bloc “more interested” in international agreements,” according to Joergen Oerstroem Moeller, a senior visiting fellow at the ISEAS-Yusof Ishak Institute, a think tank at the National University of Singapore. The EU “will not want to appear paralyzed or inward-looking after Brexit,” Moeller said.
SINGAPORE — “Yes, hello, fruits?” Shouting above the din, vendor Sini Mohamad leans forward into a conga line of office workers edging between dozens of lavishly provisioned stalls in Singapore’s Tekka Market. It is lunchtime, and crowds throng the market as dozens of hawker stalls dish out noodles, rice and curries. Most ignore Mohamad’s appeals. But he keeps at it, alongside stallholders selling meat, fish, vegetables and spices. The lunchtime crowd offers a fleeting chance for butchers and grocers to persuade passers-by to do a bit of grocery shopping before they head back to work, their palettes whetted by the aromas of spices and herbs clinging to the steamy market air.
SINGAPORE — It was tame enough weighed against his usual invective, but by itself Philippine President Rodrigo Duterte’s account of a conversation he had with his Chinese counterpart, Xi Jinping, was startling. During a meeting between the two leaders in Beijing in May 2017, the subject turned to whether the Philippines would drill for oil in a part of the South China Sea claimed by both countries. Duterte said he was given a blunt warning by China’s president. “[Xi’s] response to me [was], ‘We’re friends, we don’t want to quarrel with you, we want to maintain the presence of warm relationship, but if you force the issue, we’ll go to war,” Duterte recounted.
SINGAPORE — China has long bristled at the U.S. Navy’s “freedom of navigation operations” in the South China Sea, which challenge Beijing’s territorial claims in the disputed waters. So when Zhao Xiaozhuo, a senior colonel in the Chinese army, found himself with a chance to complain about them directly to U.S. Secretary of Defense James Mattis recently, he took it. The U.S. operations are a “violation of the law of the People’s Republic of China, of territorial waters,” Zhao told Mattis during a conference in Singapore on June 2. Mattis defended the naval operations by citing a 2016 international tribunal decision that dismissed China’s expansive “nine-dash line” claim to much of the sea.
SINGAPORE– After U.S. Defense Secretary Jim Mattis accused China of “intimidation” and “coercion” in the disputed South China Sea on Saturday, a Chinese general responded by saying that “countries accusing China” are the ones causing tension in the region. In an early morning speech in Singapore, Mattis said that “China’s policy in the South China Sea stands in stark contrast to the openness our strategy promises, it calls into question China’s broader goals.” Mattis was speaking at the Shangri-La Dialogue, an annual military conference staged by the International Institute for Strategic Studies, a British research organization. Responding later the same day, Lt. Gen. He Lei, head of the Chinese delegation attending the conference, said “China has resolve and capability to defend its sovereignty.”
SINGAPORE — If China and the United States continue their charge into a full-on trade war, few regions will be as vulnerable to the resulting economic turbulence as Southeast Asia. That’s why the 10 governments of the Assn. of Southeast Asian Nations meeting in Singapore this week are hashing out ideas about how the region can duck any shrapnel if the world’s two biggest economies keep firing protectionist salvos at each other. “Considering that China and the U.S. are ASEAN’s first and third trading partner respectively, the early exchange of blows between Washington and Beijing would be watched nervously across all ASEAN capitals,” said Tang Siew Mun, head of the ASEAN Studies Centre at the ISEAS-Yusof Ishak Institute, a Singapore-based research organization.
SINGAPORE — The recent exposé of how polling firm Cambridge Analytica mined Facebook for information on voters was focused mainly on the United States. But the investigation, which aired on the UK’s Channel 4 last month, has caused ructions in Malaysia after Mark Turnbull, a Cambridge Analytica executive, was filmed bragging that they helped the governing coalition retain power in the country’s last elections in 201, apparently by using social media to profile voters and deliver campaign messages. “We’ve done it in Mexico, we’ve done it in Malaysia and now we’re going to Brazil,” Turnbull said. With another election due anytime between now and August, Malaysia’s opposition predictably seized on that claim. The government in turn said it had nothing to answer for, blaming Mukhriz Mahathir, a former ally turned opposition member, for personally hiring Cambridge Analytica.